Jammu and Kashmir Bank plans to invest Rs 1,000 crore (Rs 10 billion) in infrastructure projects in the state over the next 2-3 years, while targeting a net profit of over Rs 500 crore (Rs 5 billion) by 2004-05.

"We are targeting about Rs 1,000 crore credit to various infrastructure projects in the state in the next 2-3 years. The sectors that would be covered include power, rail and road," J&K Bank chairman M Y Khan said in New Delhi on Tuesday.

Apart from this, the bank also plans to lend over Rs 150 crore (Rs 1.50 billion) as part of the consortium lending with companies like IL&FS and Punj Lloyd. The total investment by the consortium would be over Rs 1,000 crore in projects spread across the country.

J&K Bank targets over 36 per cent growth in net profit at Rs 460 crore (Rs 4.60 billion) this fiscal compared to Rs 338 crore (Rs 3.38 billion) in 2002-03.

"Achieving a net profit of Rs 500 crore in the next fiscal will not be difficult," Khan said.

The bank also targets a business of Rs 28,000 crore (Rs 280 billion) by the end of this fiscal over Rs 22,600 crore (Rs 226 billion) till now.

The fast growing private sector bank aims to reduce its non-performing assets to less than one per cent this fiscal from 1.58 per cent in 2002-03. J&K Bank now has a healthy capital adequacy ratio of 16.48 per cent as against the Reserve Bank of India stipulated 9 per cent.

As part of its retail thrust, Khan said the bank would launch an international debit card within a few weeks and a credit card by the fiscal end.

The bank also plans to strengthen its toehold in the western and southern part of the country.